PETALING JAYA: The government will intensify efforts to help local entrepreneurs expand into global markets while strengthening the capacity and competitiveness of small and medium enterprises (SMEs) under Budget 2026, said Prime Minister Datuk Seri Anwar Ibrahim.
He said Malaysia must have the courage to venture beyond its borders, ensuring that the creativity and innovation of Malaysians are not confined within the nation.
“Our local entrepreneurs must not only create but also compete globally. Budget 2026 will reinforce the export ecosystem and support the exploration of new and emerging markets,” he said when tabling the budget in Parliament today.
To facilitate this, Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will guarantee up to 70 per cent of financing for export-oriented mid-sized companies, including those expanding into new markets, with a total guarantee value of RM5 billion.
The Malaysia External Trade Development Corporation (MATRADE) will also receive RM60 million under its Market Development Grant to help SMEs export Malaysian-made products to both existing and emerging markets, including Africa, Latin America, and Central Asia.
Additionally, EXIM Bank will provide RM500 million in soft loans to assist companies affected by global trade tariff tensions.
Following the rationalisation of Malaysian government offices abroad, the government will launch a Strategic Economic, Trade and Investment Networking Programme with an allocation of RM10 million, focusing on high-potential new markets.
Anwar said another key focus of Budget 2026 is empowering the capacity and competitiveness of local entrepreneurs through various government loan and guarantee schemes.
Since its establishment, SJPP has guaranteed over RM100 billion in business loans, benefitting more than 84,000 SMEs across multiple sectors.
The growing demand for government-guaranteed financing, he added, reflects SJPP’s success in supporting local businesses, including Chinese entrepreneurs.
“This year alone, the National Savings Bank (BSN) has approved nearly RM250 million in microloans, benefiting more than 7,200 entrepreneurs, including Bumiputera, Chinese, Indian, Sabah and Sarawak entrepreneurs, as well as women, youth, hawkers, and vulnerable groups,” he said.
Next year, the total value of government-backed loans and guarantees for local entrepreneurs will increase to RM50 billion, up from RM40 billion this year.
More than RM2.5 billion in microfinancing will be made available through agencies such as BSN and TEKUN, while SJPP’s total guarantee ceiling will be raised from RM20 billion to RM30 billion. Its scope will also be expanded to include micro-entrepreneurs.
“The Malaysian Cooperative Commission (SKM) will receive RM50 million in financing funds to support cooperative enterprises nationwide. Since the COVID-19 pandemic, Bank Negara Malaysia (BNM) has channelled over RM29 billion to more than 86,000 SMEs under its financing schemes, out of RM32 billion allocated.
“Moving forward, BNM’s funding model will transition to guarantee-based support, focusing on underserved segments and high-impact sectors such as digitalisation, automation, innovation, and the green economy,” he said.
To encourage digital transformation, Development Financial Institutions (DFIs) will provide nearly RM1 billion in financing and grants to support automation and digitalisation initiatives. The Malaysian Communications and Multimedia Commission (MCMC) will allocate RM350 million to strengthen NADI Centres nationwide, helping rural entrepreneurs increase income through online businesses.
To further reduce business costs, the government will also raise the salary threshold for employment contracts exempted from stamp duty from RM300 to RM3,000 per month, effective January 1, 2026.
Anwar said these measures reflect the government’s unwavering commitment to nurturing local innovation, empowering homegrown businesses, and positioning Malaysia as a competitive force in global trade.
